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Lessons Learned from the Stanza iPhone App

O’Reilly TOC Conference NFAIS: Mobile Delivery of Content Neelan Choksi CEO, 30 October 2009 [email protected] twitter: stanza_reader Outline

• Who am I? • Where do stand today? • Opportunity Drivers and Challenges • An overview of Stanza • How to work with Stanza • Lessons learned (so far) Who Am I? • CEO, Lexcycle (acquired by in 2009) • Former open source COO, SpringSource (acquired by VMWare in 2009) • President and Co-Founder of SolarMetric (acquired by BEA Systems in 2005) • Previous Employers – Exxon, Andersen Consulting, TechTrader, MIT Blackjack Team • BS from MIT, MS from Stevens Institute of Technology, MBA from Univ. of Chicago Booth Last 10 Months in eBooks • Jan 26 – Classics featured in iPhone TV • Mar 23 – Borders UK ends iLiad for advertisement cheaper e- reader • Feb 5 – Google Book Search for iPhone, Apr 1 – Blackberry App World Android • launches • Feb 9 – 2 Launch Apr 2 – News Corp. confirms looking Feb 16 – Adobe Reader Mobile SDK • • into investment in “eReader • Feb 25 – Indigo Shortcovers launched Technologies” • Feb 27 – Hearst announces plans for • Apr 8 – Lexcycle, Adobe, Internet eBook reader Archive release catalog spec - OPDS • Mar 4 – Amazon Kindle for iPhone Launch • Apr 11 – B&N / Sprint ereader discussions announced • Mar 5 – B&N acquires • Mar 11 – launch in • Apr 17 – Random House announces Germany first to put into Blackberry app • Mar 17 – Apple iPhone 3.0 O/S • Apr 22 – Penguin signs English eBook announced (eBook examples) distribution in China • Mar 19 – Sony and Google – 500,000 Apr 27 – Amazon acquires Lexcycle books • Last 10 Months in eBooks

• Apr 28 – B&N/Fictionwise add EPUB to • Jun 30 – Borders release Elonex Reader Multi-format titles • Jul 13 – Stanza passes 2M users and 12M • May 6 – Amazon announces Kindle DX books downloaded on 1 year anniversary • May 12 – New update announced • Jul 20 – Barnes & Noble launch eBook • May 13 – Sony announces 3rd party store advertising in Sony Reader • Jul 23 – Shortcovers announce • May 15 – New BeBook Reader announced discounted conversion service to EPUB • May 27 – Interead COOL*ER debuts • Jul 29 – Google / Sony announce • Jun 1 – E-Ink acquired by Prime View 1,000,000 public domain titles available • Jun 2 – Google sets plans to sell eBooks • Aug 4 – Sony announces 2 new Reader models • Jun 8 – ScrollMotion in WWDC keynote • Aug 8 – Astak PRO eBook Reader • Jun 9 – California to scrap school textbooks announced in favor of eBooks • Aug 12 – Sony announces they will only • Jun 12 – S&S to sell eBooks on Scribd.com sell EPUB content from Sony Bookstore • Jun 22 – ScrollMotion and LibreDigital • Aug 24 – Sony announces Reader Daily announce 100,000 books and magazines delivered via iPhone Edition with 3G Wireless Last 10 Months in eBooks

• Aug 27 – Asus CEO tells DigiTimes that its < • Oct 9 – Egmont + Penguin + EA Games $150 eReader will be available by end of 2009 to create eBook for on Nintendo DS at the earliest • Oct 13 – Jane Friedman launches • Sep 6 – Nick Cave’s “Death of Bunny Munro” company that will republish old titles by combines video, eBook, sync’d audio big name authors as eBooks • Sep 9 – Interead announces 1+ million Cool*er Oct 15 – Browser based Google Editions devices sold • announced • Sep 15 - DNAML releases PDF to EPUB conversion software • Oct 19 – Spring Design announces Alex eBook reader • Sep 16 – Anthony Zuicker’s Level 26 rolls out as a “digi-novel” • Oct 19 – announces Bookserver project • Sep 29 - Disney announces subscription for access to 100s of Disney books • Oct 20 – B&N announce Nook • Sep 30 – HarperCollins delays eBook release • Oct 20 – B&N and Adobe to support of Palin memoir 3 months RMSDK and eReader Social DRM • Sep 30 – Further rumors of Apple Tablet • Oct 20 – AUO unveils 20” eInk display • Oct 1- Simon & Schuster announces first set of • Oct 22 – Amazon Kindle for PC Vooks – video/book hybrids announced at Windows 7 launch • Oct 7 – Amazon announces Kindle Worldwide (Oct 19) eBooks – Rapid Growth

• $94 million Wholesale eBook sales in last 4 quarters • $30.6 million Wholesale eBook sales - July/Aug 09 * Source: IDPF and AAP US Trade Wholesale Electronic Book Sales Small %age but Growing Fast • 2008: 0.467% of all books sales were eBooks per the AAP • 2008: 0.6% of all books sales were eBooks per Bowker Pub-Track • Q109: 2.4% of all books sales were eBooks per Bowker Pub-Track • October 2009 – For every 100 printed copies of a title sold, Amazon.com sells 48 Kindle books, assuming the book is available in both versions

Forrester Research predicts 3 million eReaders will sell in 2009 in the U.S. (up 50% from their May projections) eBook Opportunity Drivers and Challenges Mainstreaming of e-books

• Oprah Effect Big Name Vendors New Hardware

• Netbooks • Lots of new eReaders So Many More Devices

• Aztak Mentor EB-900 • Asus E-Reader • Cybook Gen3 • Aztak Mentor Electra • Bookeen Cybook Opus • FLEPia • Foxit eSlick • Hanvon WISEreader N518 • Ganaxa GeR2 • Hearst reader • HanLin eBook V3 • iRex DR800 • HanLin eBook V5 • • Hanvon HandyBOOK N516 • Lubix L’Book • Interead COOL*ER Classic • Onyx Boox60 • iRex Digital Reader 1000 • Pocketbook 302 • iRex iLiad • NUUTbook NUUT2 • Pocketbook 360° • Que • Pocketbook 301 Plus • Polymer Vision Readius • STAReBOOK • Samsung Papyrus* • Wizpac txtr Reader Improved Displays: E Ink Improved Mobile Displays

• Larger touch screens w/ crisp color • OTA, wireless • App Store Mobile Reading iPhone Other Devices • Stanza • FBReader • Kindle for the iPhone • eReader Pro • B&N Reader • MS Reader • Shortcovers • Global-Reader • eReader • ebook • Classics Reader • BookShelf • • BookZ • Word-Player • Libris • … many more • Wattpad • Eucalyptus • standalone books apps e-book Alphabet Soup

Formats DRM - .LIT - HTML - Reader - Mobi - RB - Adobe Adept - AZW - CHM - eReader - PDB - OEB - Mobi - FB2 - Apple FairPlay - PDF - DNL - RTF - many others - BBeB - EPUB Stanza Overview iPhone Distinctions

As an eReader: • International reach • Color display • Multi-function device • Built-in wireless • No external light required • App Store • 15% of smart phone market; 50% of web hits Stanza iPhone & iPod Touch • 2.5+ million users in 75+ countries • ~15 million books downloaded • 115,000+ books available (half free) • Books in 25+ languages • Featured in: • NY Times, Boston Globe • Time “Top 11 iPhone Applications” • Forbes • Wired “10 Most Awesome Apps” • iTunes Top Applications of 2008 • App Store 1 Year Anniversary Featured Application Geographic Breakdown Sales Top 10 Stanza Downloads • US • UK • France • Germany • Canada • Australia • Russian Federation • Japan North America Europe Italy South America Asia • Australia Africa • Spain Stanza User Customizations

• App available in 12 languages • 21 fonts options • Wide range of font sizes • 135+ font colors • 135+ background colors + nearly 30 background textures; choose your own background image • Completely customize layout: alignment, hyphenation language, margins, line spacing, paragraph spacing, paragraph indentation • Adjust behavior: page turn effects, book rotation Primary Usage • In bed – 32% • Commuting on bus / train – 27% • In waiting areas – 13% • At home – 13% • At work – 6% • At a bar or café or lunch or dinner – 5% • On an airplane – 5% • 2 write-ins mentioned “In the bathroom” Readers enjoy having access to their library at all times in their pocket or handbag Stanza Bookbinder • Create standalone books applications for sale directly in iTunes App Store • LibreDigital and others soon - aggregator

Bookbinder And more … What We Did Right and What We Did Wrong What We Got Right

• Holistic view of the entire experience for a reader:

Pur- Down- Search / browse Find Start chase load content book Reading book book

Available via partners.

• Not enough to focus just on one piece. Readers expect more. What We Got Right • Focused on the reader’s experience • Every reader is unique • Respected users’ historical eBook investments • Free/public domain content • Partnered to extend reach • Supported standards, where possible • Active at events and with PR • Translated app to 12 languages and added catalogs with foreign language content • Published catalog spec What We Got Right • Innovated very quickly • Fast releases (historically 1 per month) • Honest and open • Admitted when we didn’t know something • Community around the software • Actively listened and participated • Admitted when we made mistakes • We were early on the iPhone / iPod Touch What We Need to Work On • More foreign language and international content • Haven’t made commerce as easy as we could • Have not merchandised well • 1 newsletter ever focused solely on Stanza eBooks • Publisher promotions can tie better into purchasing • Are not using social media enough • From within Stanza: Twitter, book clubs, etc. • Outside of Stanza: Help our community show their Stanza pride Lessons Learned – Readers

• The bar is constantly moving up on everything - Reading experience - Purchase experience - Discovery - Community Publisher Lessons

• Make sure your books are available electronically: - Minimum formats: PDF, AZW, EPUB • Keep experimenting – be bold • Have a budget for marketing e-books - Better integrate your physical book marketing with your eBook initiatives Publisher Lessons (continued) • Figure out ways to support your authors better in the electronic world - Websites - Blogs, Twitter, social networking, Book Trailers - Understand the technology • Don’t let this just turn into a blockbuster industry: - Find self-service methods and appropriate revenue splits for mid-tier authors - Don’t let The Shacks of the future slip away Lessons Learned from the Stanza iPhone App

NFAIS

30 October 2009

Neelan Choksi CEO, Lexcycle [email protected] twitter: @stanza_reader